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Romania: Food and BeveragesPublished by: Internet Securities, Inc. (Intellinews) Published: May. 15, 2008 - 12 Pages Table of Contents
AbstractBusiness-like, the food and beverage industry benefits from the country’s convergence. The market of 22mn consumers, yet with a PPP GDP per capita of 41% of EU27 average, attracts the interest of foreign investors as the largest in the region. After Heineken took over Bere Mures brewery for EUR 150mn earlier in January, the dairy industry staged two key deals. French Lactalis took over LaDorna, a very strong brand on the local market developed by a Swiss investor. Lactalis eyes other takeovers also. Separately, the investment fund SigmaBleyzer took over two dairies in central Romania, after it previously took over major milk processor Covalact.Conflicts between local food processors and distribution/retail chains recently point to the lack of competition. End-user prices have increased mostly due to the margins charged by retailers, accuse the food processors whose profits are squeezed amid high prices of main inputs. Representatives of the local food industry accused the hypermarkets of cooperating in setting high margins and thus gaining excessive profits. Speaking of the retail market,it staged several takeovers also and the small local chains are likely to keep falling under large investors’ control. The primary sector of agricultural products is likely to recover after last year’s bad weather. The grain output is expected to rise three times this year, to 21.2mn tonnes. But as the high grain price period is not likely to end soon, the sector becomes increasingly interesting to investors. Separate food sectors faced differently the scarce output of agri produce last year. The vegetal oil industry seems to have enjoyed smaller production of sunflower seed, as the major producers reported profits for the first time after losses generated by excess production. Major producer Argus expects to increase its turnover by 58% y/y to EUR 61.3mn this year and to enlarge the gross profit four times to EUR 5.8mn. Get Full Details About This Report >> |
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